ESG Report 2023

91 We place great emphasis on the use of clean energy and are committed to introducing renewable energy sources across the entire Group's facilities. In the Year 2022, the Group initiated plans to begin implementing renewable energy, such as solar panels, in a short period of time. This initiative aims to provide clean energy to the company, reduce carbon emissions associated with electricity consumption, and achieve emissions reduction at the source, contributing to our journey towards carbon neutrality. To achieve this, we have planned to construct three distributed photovoltaic projects with a total capacity of 6 MW in a phased manner by the Year 2024, totaling 18 MW. Upon completion, these projects are expected to generate 25 million kWh of electricity annually. Usage of Clean Energy Inner Mongolia Company actively responds to the national carbon emission plan and participates in the verification to verify its carbon emission. Since 2019, Inner Mongolia Company opened an account for carbon trading and opened different systems, including the national carbon emission registration system and trading system, and the national voluntary emission reduction registration system and trading system, which laid the foundation for contract performance. In November 2023, we purchased a total of 695,461 tons of carbon quota to offset the shortfall in carbon emission quotas. 10.2.3 Align with Country 10.2.4 Management of Water Resource Water Resource Management Target for the year Water Resource Management Achievement for the year Linhe District, where Inner Mongolia Company is located, has a diverse natural ecological environment and ecological environment care and remediation has always been the main task of the provincial government. The comprehensive aquatic ecology governance action is an important part of the construction of ecological environment protection in Inner Mongolia. In this connection, Inner Mongolia Company actively coordinates with the policy to reduce water consumption in every step of its production and daily operation in different ways. In addition, greenhouse gas will be generated in the process of sewage treatment, leading to carbon emission. Therefore, the consumption of water resources is closely related to climate change. Inner Mongolia Company thoroughly understands the details of the use of water resources and strives to reduce the consumption or waste of water resources in every detail, so as to reduce greenhouse gas emission and its impacts on climate change. Environmental, Social and Governance Report 2023 The United Laboratories International Holdings Limited Water Resource Management Strategy Implement water conservation projects and enhance technological capabilities Develop water resource management measures for production factories and offices Reduce the water consumption of Unit 1 Product annually Maintain 0 wastewater discharge and achieve 100% wastewater reuse as reclaimed water Improve the recycling efficiency of reclaimed water to reduce the demand for fresh water The water consumption of 1 Unit Product decreased by 7% compared to the previous year 0 wastewater discharge Achieved a 100% reclaimed water utilization rate Implemented high- concentration water fractionation and 10t/d caustic soda recycling project, with an investment of RMB57.05 million Note: 1. Unit Product, refers to product per ton.